Telecom bodies are preparing to challenge the Delhi High Court's recent order that allowed the Comptroller & Auditor-General (CAG) to audit the accounts of private sector telecommunication services providers.

The Cellular Operators' Association of India (COAI) and the Association of Unified Service Providers (Auspi) have announced that they would file separate pleas in the Supreme Court seeking interim stay on the Delhi High Court's order.

Both COAI and Auspi argued that CAG should audit the accounts of only public sector companies, while accounts of private sector telecom firms should only be audited by the Department of Telecommunications (DoT).

The industry bodies stressed that the licence fee that telecom operators pay to the government goes into the accounts of DoT. So, CAG should audit the accounts of DoT.

C. S. Rao, president of Auspi, said, "We are expecting hearing of our Monday's petition next week. If necessary, DoT can audit again any suspected arrears in private telcos' revenues."

Spectrum usage charges (SUC) are in the range of 2 per cent to 8 per cent of telcom firms' adjusted annual gross revenues, while contribution to the Universal Service Obligation Fund is 5 per cent. Telecom firms also pay licence fee of around 6 per cent to the government annually.

Rao added that any audit of private telecom operators by CAG would tantamount to a breach of the Constitution which allows national auditor to audit accounts of only public sector companies.